Step 12: Award the items to the highest bidders.
The record-keeper should examine all of the bids and reserve prices, and award each item to the highest bidder. That bidder should be charged either the second highest bid or the reserve price, whichever is higher.
If there's a tie among recipients, flip a coin to determine the winner. In these cases, the second highest bid will be equal to the highest bid. If a recipient bids an amount equal to the reserve price, invite the recipient to accept the item at that price. If he or she declines, sell it to the estate liquidator at that price.
If outside bidders win, then they should be charged the reserve prices, which should equal the amounts that they bid.
In the Snider auction, an estate liquidator has bid $1,050 for the walnut desk, so that is the reserve price.
Bob wins the lawnmower for $150 (the second highest bid) and the walnut desk for $1,050 (the reserve price). Mary wins the ceramic horse with rider for $300 (the second highest bid).
Go to Step 13
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Copyright © 2003 Lori Alden. All rights reserved.